Procurement Structure Design

A large retail group in Australia embarked on a group-wide initiative to improve its competitiveness in the market. Reducing operating costs, along with improvements in internal processes was a focus area of the initiative. A review of its procurement function structure, processes, and opportunity to reduce costs was required. The client did not have the internal expertise to complete such a review.

Services

Caliba was engaged over a 3-month period to:

  • Review the current function structure and team member capabilities
  • Interview key stakeholders to determine the business needs
  • Provide advise on a ‘best fit’ procurement function structure to suit the business objectives
  • Assist with the validation of the new model across the business
  • Assist with the planning and implementation of the new function structure

Outcome

Caliba delivered the following for the client:

  • Examples of ‘best practice’ procurement structure across other sectors
  • A new function design to suit the current business needs and to achieve new group-wide objectives
  • A plan to take the business from the current state to the new design
  • An estimate of the financial benefits that will be achieved by the new design
  • Position descriptions for the new team roles